Court Ruling Limits FERC's Power

In a major blow to federal control of electricity markets, an appeals court said the Federal Energy Regulatory Commission has no authority to dictate the composition of governing boards of electric-transmission organizations.

The ruling of the U.S. Court of Appeals for the District of Columbia circuit represents a slam-dunk victory for California, apparently ending a three-year battle between the commission and the state regarding the selection of directors for the California Independent System Operator, the nonprofit corporation...